19 SEP 13, 10:15 AM
Step 1 : Market Analysis
Nifty : Up 188 Pts
Cnx 500 : 125 Pts
A:D : 4.5 : 1
Market Analysis says today is "Up Day or Bullish Day"
Step 2 : Chart Analysis
Nifty opened with the huge gap of 145 and hits its head at weekly resistance zone (high point) of 6095 and . had a small correction . The price bounced back to this level again. This is the third gap in daily chart. This may be exhausted gap which may come at end of the trend. As per chart too much bearishness. The long position should taken only above 6100 and be ready for some breakout failure.
Conclusion.
Long position will be taken only above 6100 with tight stop and short can be initiated at 6100 with tight stops. Be ready for small losses.
Reason for entry:
1. Price at weekly resistance.
2. Price at opening bar high.
3. Shooting star at resistance.
4. H trend: Down
Conclusion
Nifty price chart may suggest very good profit in long trade. But still we trade as per our analysis.
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